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And you’re worried about Social Security Trust?

Have you ever heard of the Federal Thrift Savings Plan (TSP)? It’s the 401k type plan for federal employees and there are 5 million current, retired and former employees of the government with account balances in that plan. One of the investment options is fund G.

The G Fund is invested in short-term U.S. Treasury securities specially issued to the TSP. As a result, the G Fund can be affected when the statutory debt limit is reached. However, the principal and interest payments on these securities are guaranteed by the U.S. Government.

As of 2015, nearly 40 percent of the money invested in TSP accounts is in the G Fund–almost $200 billion. The interest in this fund is calculated the same way as the interest on bonds held by the Social Security Trust fund.

So, if you think that Congress stole the Social Security Trust money simply because it is invested in special US Treasury bonds, then Congress also stole the retirement money from five million of its employees. 🤑

Of course, nobody stole any of this money, it’s invested and paying interest.

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Sorry, the reason people think this is phantom money, is because the only underlying asset is the federal government’s willingness to tax someone to pay both the interest and principal when payout occurs. Since we are $20 Trillion in debt, and our unfunded liabilities for entitlements are estimated by some as >$200 Trillion, forgive me if I don’t hold such promises in the same high regard as an investment in Apple or walMart. And, adding to the challenge of Social Security, is the fact that it is not guaranteed, it is not a contract with taxpayers. It, like the tax code, is all arbitrary – the only certainty, if you can call it that, is its history of change. You complain about companies who, within their contractual rights, change retiree medical. We don’t even have even that guarantee when it comes to entitlements like Social Security.

The government will just borrow the money (print it out of thin air) like they always do. Remember deficits do not matter, until they do. I do not know how long the FED can continue to keep the ponzi scheme of government debt going, but they think they can go on forever.
The fix – Higher taxes for everyone in the near future. I am living on $20,000 in retirement with zero government assistance, I have $50 per month too much income to qualify. I pay zero federal income tax, but if required to pay 10 or 15 percent, I would figure a way to get by. I paid 18% federal income tax in 1980, why does the government think people paying less in taxes is a good thing. Everyone with income should be paying at least 10 percent after all deductions, even large corporations. In about 10 years we will be paying as much or more in interest on debt as we do on national defense. I have always been a pay as you go, for most things, kind of guy, but the political elite seem to think debt is a good thing, CRAZY!

Same ol, same ol…. Raise benefits for current beneficiaries and send the bill to a select group of future taxpayers without addressing the current sustainability challenge.

Wanna know just how stupid these people are? The prior proposed legislation (and probably the current legislation) sets the minimum benefit at 125% of the FPL – or about $15,000 a year.

So, someone who is age 66 today (social security normal retirement age for someone born in 1951), who worked 40 quarters in the past, say from 1967 to 1975, who paid in the minimum to qualify for 40 quarters of coverage – he contributed all of $90. $90! Converting that $90 into 2017 dollars @ 6%, yields $1,012.

So, this idiot wants to pay people $15,000 a year, for each and every year for perhaps 30 years, he wants to pay 15 times the total amount they contributed!

This is another example of how, as Dick points out over and over, they lie – they allow older Americans to think that they paid for this benefit, that their contributions were sufficient to fund the benefits they receive.

I looked at the SSA 2100, and it is just adding fuel to the fire, for sure. I have changed my mind on the whole SS mess. Do not change a single thing. Let the system go to 75% of current benefits in the 2030’s and anyone that qualifies for additional government benefits can receive them. Knowing the political elite, that is probably what is going to happen.
That way everyone gets less and maybe that will get younger workers to open at least an IRA.

The do nothing Congress has lived up to the name, they have been told for years SS is in trouble and they know it is true, yet they do nothing. You cannot increase benefits without increasing taxes, or debt, much more than the SSA 2100 would have you believe. We do not need is an additional 5 Trillion or more added to the national debt in the future, just because some politicians wants to get reelected.

That’s true, and that was my first impression, but I have read the actuarial report on this bill and they do indeed pay for the changes by higher payroll taxes implemented over several years. In addition, they add a new tax on those earning over $400,000 a year. I objected to that type of funding as well, but this bill also adds a benefit increase for those people as well based on the additional taxes they will pay.